I was researching on the idea of buying a used car with an average budget of 5000-6000 , when i saw an offer which seems extremely good.
This was a discount of £3500 on the new Almera 1.5 S bringing the price down from £10750 to £7245.
This is a straight 33% off the list price of the car!
Now assuming the depreciation to be 30% after an year , if one were to sell off this car even after an year , there would only be a minimal loss if at all any!
Agree the Almera is not an easy one to sell off , but what would you think about this!
Any ideas on this?
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It's in Weekend's Best Deals on this website. But of course there has to be a reason and the reason is that's what it's worth. So all you do is save yourself from being ripped off. You don't benefit from negative depreciation.
HJ
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30 months ago I bought a brand new unregistered Honda Civic Aerodeck for £10500, a discount of £4250 when Honda UK decided to clear the decks prior to the launch of the present model.
My local dealership sold all they were allocated in a few hours I was lucky enough to get the last one in the colour I would have chosen anyway, silver.
A year later I believe I could have sold it for the same money according to the parkers guide at the time.
I still feel to this day I got a bargain when I look at the current residuals.
Mal.
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If they are giving 30% discount, when you go to px you'll find that Glass's guide will have taken this into consideration and you will get offered a lot less, you can't beat it.
If its a out going model when you go in for part ex, you get the ahhhh, ummmmm, treatment, of course that was the old model sir.
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Citreon are offering £2000 cash back on C5's plus a local dealer will give another grand off. My mate just bought a 6 month old C5 6k on clock for £8k, this is still bad depreciation, who knows what the poor guy got who put it back in got.
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Might have been a "poor" hire company not a poor guy.
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HJ
I must say I didnt have a look at the Weekend Best deals on this website before I posted that message.
However now i have and i must say that this is not from newcar discount.com because the price for the 5 door is given as 8000 , whereas with this company,it is only £7250.
For obvious reasons I didnt put the name of the outfit down.Didnt want to be accused as an advertiser, but I must say that this is a better deal than the ones on the Best deals on this website.
Agreed that i dont benefit from neagative depreciation , but then if you look through the used car dealers selling 1 year old similiar spec Almeras with mileages of 10000 for £8900(Believe it or not!).
Now why on earth should anyone want to buy those second hand cars when you can get a brand new untouched car for a good £1700 less?
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Because Nissan dealers tend to sell their nearly new stock with offers such as £2000 minimum p/x and five years' interest free credit. That, plus a persuasive salesman, can make it look like a very good deal.
It might even be. If your car is worth £200 as a p/x and you get £2k for it, £9k becomes £7200. If you'd have to pay 13% APR over five years, that £7200 becomes £5400. Of course most people pay less than 13% APR, take shorter loans and have cars worth more than £200, so there's normally much more profit than that but if they can buy the car at one year old for £5k they're making money on every single deal.
Without those sweeteners, £9k is a horrendous price of course, but it goes to show how looking at only one element of a deal can cloud its true value.
These offers are still built into the price they'd pay for your car in a year's time. If a new Almera is £6795 from www.jamjar.com , unless the price miraculously increases in a year's time, its trade in value is likely to be around the £5000 mark for the reasons given above.
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Now of course all this is assuming that one has a px .
I agree that when trading in a car , you get better values than if you were to sell otherwise.
If we were to fastforward to say 2 years time, no one would ask me what I have paid for the particular car, ie £6750.
All that is relevant then is the original list price(10500) and the seller looks at how much the value has dropped in comparision to that over 2 years.
If it were to be a low mileage example , then as a seller , provided i have a fsh and the car is in exemplary condition, then what would prevent one from getting the equivalent depreciation percentage off the original list price.ie list price minus % the car has dropped in value according to Glass valuation for its age and mileage.
But then all this is assuming that
1. the list price doesnt drop
2.the car is reasonably easy to shift.
Agree the Almera doesnt quite satisfy condition 2.!!
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Don't misunderstand me, this car is cheap enough at £6750 to give you some very cheap new car motoring.
However - you only get more if you p/x your car if the car you are buying is overpriced by a similar amount. If the dealer is at all switched on, he will give you trade price plus (possibly) some of the extra margin he has in the replacement car if he has to sweeten the deal. A private buyer should give you more.
No one will ask what you paid for the car - but there will be enough cheap Almeras around that it won't matter. Glass's and the other trade guides don't work on percentages but on hard figures based on transaction prices and profit margins.
People will know what this car is worth and list price is irrelevant to value at three years old. Probably a new Almera now will be worth in the high three grand range in three years' time - only £3k depreciation (compared to maybe £5 or £6k on most cars costing £10.5k) but if it's cheaper now it'll be cheaper then too.
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There is only one criterion to consider, from a list price/part exchange offerpoint of view and that is "How much to change my car?"
Far too many financial illiterates are beguiled by £1000 minimum PX on any old rust bucket.
Rest assured, the "new" car will be priced up at close to £1000 more than it is truly worth. I know - I used to do it and it works !!!
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